Keep An Eye on These 4 Earnings Reports to Lock in a Profit

Earnings misses at Blue Nile offer opportunity to profit

Last Friday stocks took a step back after trading sideways for much of the week. Shares sank after the jobs report disappointed investors. Chalk it up to more evidence in support of a tepid economic advancement at best.

It will take much more steam to propel stocks higher, and I simply do not see any facts to support such an argument. On the flip side is the risk-on trade that keeps investors flocking to stocks helping to keep prices high.

As long as that remains the case, there will be many more Stone-Cold Earnings Trade Lock of the Week opportunities.

They say you should make hay when you can. This is one of those times.

Here are four companies reporting results this week, and all of them have provide you an opportunity to lock in profit on trades:

Blue Nile

The online diamond and jewelry retailer reports results for the quarter ending March 31, 2012 on Tuesday after the market closes. Wall Street expects Blue Nile (NASDAQ:NILE) to earn a profit of 6 cents per share in the period. The estimate was at 17 cents per share 90 days ago.

Blue Nile has missed the number in each of the last three quarters. Shares of Blue Nile have fallen by 50% in the last year. Analysts expect profits to be flat in 2012. At current prices, shares trade for 38 times 2012 estimated earnings.

Stone Cold Earnings Trade Lock of the Week: Blue Nile has disaster written all over it! The company has missed expectations badly over the last three quarters. Profit growth is expected to be nonexistent in 2012, yet shares trade for a huge multiple of forward expected earnings.

Activision Blizzard

The video-game company reports results for the quarter ending March 31, 2012 on Wednesday after the market closes. Wall Street estimates that Activision Blizzard (NASDAQ:ATVI) will earn profit of 4 cents per share. Some 90 days ago, the estimate was for it to make 15 cents per share.

The company has exceeded expectations in each of the last four quarters. Activision shares have gained 10% in the last 12 months. Analysts expect the company to grow profits by 5.5% in 2012. At current prices, shares trade for 13 times 2012 estimated earnings.

Kohl’s

The discount clothing and home products retailer reports earnings for the quarter ending April 30, 2012 on Thursday before the market opens. Wall Street expects Kohl’s (NYSE:KSS) to report a profit of 61 cents per share in the period. 90 days ago the estimate was at 77 cents per share.

The company has matched or exceeded estimates slightly in three of the last four quarters. Shares of Kohl’s have slipped by 5% in the last 12 months. Analysts expect profits to grow by 8% in 2012. At current prices, shares trade for 10.5 times 2012 estimated earnings.

Nvidia

The graphics chip maker reports results for the quarter ending March 31, 2012 on Friday before the market opens. Wall Street expects Nvidia (NASDAQ:NVDA) to report a profit of 10 cents per share in the quarter. 90 days ago the estimate was for the company to make 18 cents per share.

Nvidia has matched or bested estimates in each of the last four quarters. Shares of NVIDIA have dropped by 34% in the last year. Analysts expect profits to drop in 2012. At current prices, shares trade for 18 times 2012 estimated earnings.